Consumer Retail Loyalty: An Analysis Into Tesco (2008)
Consumer Retail Loyalty Tesco Clubcard Dissertation – Historically, marketing has focused on market share and customer attainment rather than focusing on retaining existing customers and on building long-lasting relationships with them. More recently, however, market share has been progressively losing its revered as the pinnacle of marketing and the wisdom of focusing solely on customer acquisition (hoping that this effort will compensate for high levels of defection) is now being seriously questioned and considered as very high risk since ever more players enter an increasingly crowded marketplace.
In response to these changes there has been a new emphasis on defensive marketing, which focuses on holding on to existing customers and getting more custom from them (higher “share of customer”), in contrast to activities which focus on winning new customers. Calls for a paradigm shift to the pursuit of loyalty as a strategic business goal have become increasingly popular over the recent years.
Since the study examines the Tesco Clubcard only, the results cannot be generalized for every loyalty schemes. Future research should seek to replicate the study onto other retailers in order to be able to get a broader understanding of the loyalty effects of customer-loyalty-programmes. Also, this study only examines the loyalty effects of the Tesco Clubcard in terms of its marketplace impact; it does not examine the loyalty effects in terms of the financial impact of the programme. The econometrics of the Clubcard doesn’t form a part of the research.
The interesting perceptions with contradictory thinking with regards to loyalty in retail and loyalty schemes is what aroused sufficient interest in the author to go in for research into this elusive concept. Although conventional wisdom dictates that customer loyalty is the most vital aspect of every business because companies live or die from repeat business, in reality, loyalty programmes are surprisingly ineffective and almost 50% of them miss their business objectives partly or completely.
Yet, most of the major supermarket multiples have already joined the bandwagon, for some, it’s a roaring success while for others it turned out to be more than a liability. This tricky tale of retail was what made the author go in for research on loyalty as no existing literature gave a clear-cut judgment on the subject of customer loyalty in retail. Is loyalty an armory which came, conquered and died?
- 15,000 words – 85 pages in length
- Good in depth analysis
- Excellent use of marketing models
- Outstanding piece of work
- Ideal for marketing students
Aims and Objectives
Conclusions and Recommendations
2: Literature Review The Concept of Loyalty
Customer Loyalty Programmes
Loyalty as Strategy
Rhetoric versus Reality
3: Methodology Research Methodology
Summary of Results
4: Analysis Results
Discussion of Results
Origin and Motives
Tesco’s definition of Loyalty
Strategic implications of the Clubcard
5: Conclusions and Recommendations Conclusions
Challenges for Tesco